BHC - Earnings call transcript Q4 2021 | Bausch Health Companies Inc.

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Operator

Good morning, and welcome to the Bausch Health Fourth Quarter 2021 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Arthur Shannon, Senior Vice President, Head of Investor Relations and Communications. Please go ahead.

Arthur Shannon

Thank you, Anthony. welcome results fourth conference and year and everyone, financial XXXX call. morning, to quarter our full Good Participating on today's Officer, Mr. call are Chairman and Chief Executive Joe Financial Chief Papa; Officer, and Mr. Eldessouky. Sam

and Hirsch addition, call. today's be In and the Scott Appio joining portion Tom Joe Sam of for Q&A will

replay this on a our the Relations this In website presentation addition of slide will section. webcast, under live to conference copy call a today's and of available be Investor

We presentation begin, ask we'd remind today This beginning the like take as contains information. moment that would financial our contains contains presentation it a forward-looking information. we you measures. Before statement the you forward-looking of to read non-GAAP our presentation important that at; to legend

presentation. of For in be about more please presentation the refer information measures, reconciliations the the Non-GAAP found these appendix of on to our posted website. can X Slide

this to as is not to financial is disseminated not and my until the to today Finally, With turn call guidance Joe. other guidance pleasure public policy over update presentation in our disclosure. It the it generally through that, than only. update affirm guidance broadly or quarter is following to effective of the

Joseph Papa

us Thank you, thank Art, for everyone, you, joining and today.

detail begin a fourth quarter the alternatives and full with We so discuss will financial Health the XXXX review and highlights. in CFO, our guidance. then full update cover, lot Sam Bausch have year process on the to XXXX Bausch an discuss I'll strategic and Eldessouky, Health results our year

the line questions. for conclude by the reviewing Finally, results business opening before I'll

for we new and Health existing across B&L in statement a credit IPO filed recent our existing proposed certain facilitate & Lomb X, Medical. progress the to separation, to debt efforts value each IPOs to to we Solta unlock B&L debt can and continue the raised Slide Bausch refinance where full and IPO registration publicly to the of in facilities, As most you company. milestones The announced great see to refinancing subject on Bausch make we the our of

Bausch Medical And we distribute the Health are subject following launch to and Our of & planning and Solta move customary the of to preparations substantially to regulatory complete. Lomb IPOs the conditions market existing After Lomb approvals IPOs & and other to and achievement net factors. and to remaining to the we plan are forward, prepared shares leverage subject Bausch shareholders lockup complete, of target approvals. Bausch ratios expiry are

Turning to X. Slide

of X.Xx net we said in a As to the targeting range X.X We are intend the for the Pharma time & Bausch and we for X.X% have spin. less of Bausch of leverage at to than previously, Lomb & leverage cash occurred achieve that paying of debt Bausch the generated Bausch in down IPO the & Amoun Lomb of Lomb, ratios by these a XXXX, business. and from raise divestiture Solta the debt Medical IPO the target with business

in to as beginning remaining quarter to also working the as value Medical from efficiency. want of We Solta with delever use note improved results line our Bausch current our against segments: will appendix up X the Lomb XX XXXX earnings, Solta how and of cash expect generated capital also Slide Pharma, structures the that first operations segment financial the I and we to well shows be new segments. reporting & Medical. Bausch in

revenue organic versus finished growth XXXX. revenue now company growth Turning year total X% X. X% to We of Slide with reported of the and

$X down more billion operations divestiture than in than of from cash flows Amoun $X.X exceed debt our from goal of and of more cash XXXX. adjusted the paying us strong billion to Importantly, helped proceeds

which International last the quarter versus revenue line versus XXXX top year. drivers the to taking launch cover reported create year fourth X% catalysts this results achieved revenue team revenue very that well delivering in continued organic addition time XIPERE more and we advancement companies. growth Our to The with growing launches leading million The great with shareholder in for product we key both Health And TRULANCE, over in a significant steps the near-term performance growth of and are $XXX in and clinical XIFAXAN goals and effort. X XXXX brands than unlock great with to finally, reported results the R&D of a detail. successfully NOVXX new Bausch turn IDP-XXX, of to for positioned We on growth for demonstrate in are on late-stage reported saw XXXX. statistically XX% more of recovery our of first including trials market while our strong 'XX, results X and Rx a to quarter capitalizing growth. value and and it XXXX Sam XXXX share products our With and and financial key in catalysts, I'll that, thanks full entered segment

Sam Eldessouky

you, Thank Joe.

results, mean basis organic we we about impact when growth, Just the the and a divestitures adjusted discuss remove a quarter fourth discontinuations. constant on I talk revenue to before of reminder, currency and our

Slide to our results on X. Now turning

on strong continuation from the results posted demonstrating recovery XXXX In Our COVID X% quarter, of we the our results throughout build our fourth performance of organic revenue our quarter businesses. the and growth. confirm

B&L up X% Ortho our XX%. and revenue Rx International Derm posted X%, we business year, X% full growth. X%, down up Diversified Salix our organic business the up X%, up For with

of in $XXX revenue provide XX% the including businesses B&L fourth X put Care SofLens. of X Biotrue me International continued in Global was up details with our segment. organically. strength the U.S., growth, organically, which was ONEday, on revenue quarter let X% growth by the growth by organic by our market organically, X% B&L Ultra ONEday in driven our our and driven SiHy each X% share Care and was brands, of INFUSE. starting the our alliances Biotrue was within of up million of and led business, more daily up Vision $X quarter Starting Fourth billion with Now Vision segments.

Care to compared business continue Global as growth of We performance a year full organically our last XX% year. see with strong to Vision in

Moving U.S. international business. up in the reflects $XXX XX% of Surgical of Global number in and organically, the up recovery Fourth Surgical growth surgical markets. with to major on XX%. quarter all our The X% business procedures continued million our up revenue our in was

Surgical XX% year, For Global compared organically Asia. the business to as strong U.S., the and grew the Europe full XXXX, in with growth

to business. million exceeded business in with the growth Turning With revenue quarter $XXX quarter. the XX% was annual of consumer the U.S. the growth led revenue. U.S. X% in organically, Global in performance, $XXX X%. Consumer with LUMIFY Fourth LUMIFY up up the strong this million

strength our and quarter. Biotrue driven gained business also vitamin share multipurpose XX% ARTELAC care in renu market Our mainly share brands solution. renu lens organically, eye the lens PreserVision in brands, Ocuvite solutions gaining our brands International and and Consumer The care and up in and Biotrue by and was multipurpose

versus For business the grew X% organically the XXXX. Global Consumer year, full

quarter LOTEMAX Ophtho was business. in the Finally, erosion fourth revenue $XXX business the and decline of X% quarter the mainly of fourth driven the down LOEs Rx organically by versus U.S. the Global generics The products natural in million was XXXX. branded

XX% versus access. was by Global organically International and growth quarter. promoted Excluding in benefit the expanded our growth in saw Asia. In Ophtho LOEs, patient current the the the In QX VYZULTA up Rx organically driven was X% Ophtho XXXX. TRx brands quarter, EMEA of U.S., impact up fourth from business the the XX%

growth in by channel, the quarter X% Fourth net sales, quarter, we've $XXX QX but XIFAXAN, was was brand. Salix. the Care million demand nursing reaching to turning mainly care occupancy Despite driven Performance XXXX. recovered and demonstrate remain from being milestone up seeing driven of long-term was which to recovery in reported revenue $XXX steady achieved home In by strong pre-pandemic a a up higher net XIFAXAN rates revenue for the highest Canada trends. fourth to million X%, continues price. levels. by higher fully Now long-term low. We're the XIFAXAN the

continue TRULANCE coverage in We but up successful was up from recovery the mass RELISTOR volume, in brand. also for care mainly throughout price. expect from net XX%, XXXX. mainly by to our volume part driven increase XX%, an to expand to due was efforts the

For grew compared the XXXX. Salix to X% business the full year, as

revenue Now business. our we of of X% turning to segment up was Rx quarter International sale XXXX, third was Pharma up which Rx The performance growth strong million. Canada, the by mainly and Amoun, with Reminder the international that QX the during The organically organically $XXX organically, in Egyptian fourth driven versus segment. Poland, was XX% XX% XXXX. of which quarter completed was up

For Rx year, full X% was International up the organically. segment the

down in quarter Fourth business Global driven on and realized of to business was was U.S. with Asia. organically. derm performance Derm revenue XX%, strong mainly segment. was The million Solta organically pricing. The down the net by medical X% lower X% Ortho up $XXX Moving

up XX% were the Global full year, revenues Solta For organically.

Diversified of declined organically. Finally, XX% million our fourth quarter revenue segment $XXX

lower in the benefited was Ativan, growth business issue Our on MYSOLINE prior quarter, Aplenzin. offset and from Neuro to by both due Wellbutrin year and volumes down supply a in X% competitor which

our organically competitors business market additional generics enter pricing compete down the and erosion Our biggest the with products. was the net as factor being generic XX% of volumes and natural with

the quarter. Dentistry Finally, was prior flat year versus

and With you that XX.X%, with compared which basis, the were full as more of adjusted covered favorable to Mix we Turning level gross revenues, by a me XX%. XX Slides slightly our of in which return this impacts key saw items. QX normal gross enabled to to year million versus margin, on inflation expenses, margin slightly let non-GAAP promotion we I XXXX. store, above Starting margin costs walk so more adjusted the higher the which is a points activity quarter offset XXXX QX year adjusted and that is QX Note adjusted us P&L through headwinds $XX with on up manufacturing versus XX and XX. full as full our year guidance SG&A basis XXXX. an key quarter. was operating than just line was gross absorb factor

by XXXX billion, SG&A was of down guidance our in spend. payroll result as a year billion. Our of full mainly timing year of was quarter which to R&D $X.XX full the was $X.XX X%, adjusted

Adjusted year, on $XXX to XXXX. a constant million down currency For the was X% the $XXX full with for R&D up QX X% million. basis of was quarter compared EBITDA

is currency was of was adjusted EBITDA enabled the guidance of A billion constant post the end which basis range of X% fourth performance us year, high full on Amoun XXXX, the EBITDA a impact Excluding at to final divestitures, for quarter up our which solid from the adjusted for up XXXX. $X.XXX X%.

XXXX thought XX.X% purposes, XX our to were you Solta our I The XXXX included it adjusted roughly the and remaining to between modeling helpful understand is our B&L, response pharma requirements. is Global in may businesses. for to be for X.X% for information GAAP how provide adjusted XX% EBITDA and for EBITDA split XX new For business. Slides disclosure key additional

XX. Slide to turning Now

generated operations we quarter, $XX basis. million the from of a During cash GAAP on

million, during connection we the $XXX was from we a adjusted earnings, only of Amoun full second made the legal year guidance As quarter payment above we cash strong fourth $X.X us cash bringing settlements in a QX with million, settlements We're made Also Adjusting and payment disclosed $XX in pleased legal which quarter, our final of our costs legal to of legacy cash for million legacy related divestiture. generated taxes XXXX, the billion. the settlements, to the billion. QX $XXX XXXX for in in XXXX. $X.XXX the separation-related generation flow in brought XXXX operations very with adjusted

to Turning XX. Slide

paydown. make our on debt to continue progress We

revolver we XXXX million During debt, $XXX that paid of repaid QX on QX of in hand. cash billion XXXX, we drawn $X.X subsequently with of in net

On or to to Our cash XXXX, don't fourth progress we repaying revolver our debt resulted of continue make XXXX XX, with end the focus until our Slide any reducing on in as quarter X.Xx by of our debt, mandatory of the hand, payments of strong in nice the QX performance commitment have today, XXXX. XXXX. combined leverage net maturities maturities amortization with outstanding of as with debt in we and

Now our XX. turning guidance to on and Slides XX

of impact and in $X.X current an X% range of billion, that $XX performance which Considering pressure organic Amoun revenue $XXX XXXX X%. we guidance million, is for a is to on of growth $X.X be based billion Our $XXX improvement million. of the the represents FX divesture and estimate the base the to rates to million XXXX business

provided to growth lower prior impact revenue your previously is be LOE to business on and We As we'll our by to the additional years. continues we million. Also help our $XX business. impact communicated, approximately much the than estimate details in modeling, on moderate organic

XX% We XX% about to expect organic be the to for growth for for and to B&L X%, X% business about X% be pharma Solta. to to

range of the the adjusted growth a million we Our our of and of $XX guidance million, FX XXXX billion our the for divestiture which adjusted be pressure, range. $X.XX Concerning of to midpoint guidance at just at impact EBITDA estimate X% is to $XX EBITDA $X.X the billion. Amoun

the So full with guidance XX. that, our backdrop, let's on details go Slide into year of

have and an We expect Also, to taking our to gross level, margin inflation pressure, impact overall overcome margin. roughly steps what favorable chain market. be across measured gross mitigate We're seen have XXXX and product seen the you we gross XX%, chain our by At supply price which driven increases adjusted which margin gross has pressure is with mix a supply consistent these slightly and proactive the on margin. through challenges is to efficiencies. macro by taking

flat relatively last steps years, percentage SG&A expect year-over-year to optimize $X.XX the to manage of taken our have of a baseline the In cost and as remains which adjusted we be structure. in few We revenue. range billion,

that in cost we from to the cost the achieved to continue line XXXX will we suggests top support optimization guidance structure leverage and benefit that Our our growth.

We is million guiding up roughly $XX in R&D which XXXX, XXXX. $XXX from are for to million

For guiding to $X.X billion. interest expense, we're

billion. tax adjusted expect roughly to operations $X.X from adjusted XX%, full in our year be the range rate to be we flows cash expect and We of

very we will in performance. continue Finally, provide update summary, your you In our be guidance for the momentum pleased helpful We business strong XXXX. as we're additional that underlying details believe the XXXX models. that will in with you

of margin, based cost EBITDA and generation. revenue structure solid strong on XXXX optimized growth adjusted and gross Our guidance improved flow expectation growth, cash is our organic

you, back to Joe. Now

Joseph Papa

Thank you, Sam.

the Let Slide business Bausch Lomb on starting me comments a on results, make & few with XX.

Let daily spherical XXXX Global launched be U.S. in in lenses out tailwind multifocal many that few in highlights and Vision we strength will markets. and and the we SiHy me lenses continued our a call first. Care believe saw rollout internationally, the new both as a the of

share. SiHy the U.S., daily XXX% coverage. to over lenses increase Our In ended continue the fixed debt and a in accelerate gain with have now customers. we sales We year XX,XXX

XX consumption a of U.S. In XXXX U.K., growth approximately launch and plans a Geographic for driven only the by markets Global by revenue number driven share million future the We plus the sales IOLs, compared by half. strong LUMIFY as of but consumables in to and and moment versus to brand Surgical reliever spend grew redness category. in market Elite exceeds in strong XXXX The not multifocal. a on SiHy in rebounded Slide Consumer, on enVista, XXXX, growth from first Global also saw base Stellaris Spain. $XXX XX% achieved our XX% I second reopened and our XX. the This reported LUMIFY France half want was a became builds XXXX instruments. daily in demand Europe

a have backed the by began clinical our with We platform of drive results. B&L we the differentiated highly integrated care case illustrated power of and the promote eye successfully performance fully our products. In launch, of LUMIFY, to product

product social for collaborating professionals television, and with a care Our beauty was to awareness strong presence. education able with by among media awareness the while drive eye driving relations public enthusiasts and team

satisfaction meet demand After drive years. the with customer benefits to through XX% recommended with we integrated able share over of & became brand approximately the last through leverage with believe the efforts, expect future a speak then care reliever along is this a few growth LUMIFY performance physician patient innovations. leverage LUMIFY's achieved and XXXX, Bausch XXXX and a rate market Slide for fully in number distribution to of continue reliever category. redness We are the a has and themselves. in launching category. to partnership $XXX-plus optometrists being we're The sales the e-commerce XX person which example and retailers XX% one progress and Lomb XXX-plus key differentiator We illustrates for force of made of May product the results able redness charts with X to million in these distinction channels. Lomb on to products platform, and directly ongoing ophthalmologists detailing the and in the & These helped ongoing to Bausch the B&L eye

calling fiscal Slide growth reported by and TRULANCE to X% I'll Moving a start few XX, RELISTOR. driven now Salix revenue by XIFAXAN, Bausch highlights pharma. year out by to compared for 'XX,

by reported trial trial products, III the on crossed from We are product And realized Salix driven versus by that XX% advancement Phase Finally, statistically with year IDP-XXX, significant revenue line grew of versus Rx I'm of and a million top of saw revenue also driving Aplenzin results to pipeline higher Aplenzin in level by a happy XX% III the SSD of a has Phase volume. on net year. combined for XXXX. International pricing Diversified clinical also both the XXXX second Dermatologics II to Ortho pivotal trial initiation quarter full rifaximin Phase Wellbutrin of and growth revenue last formulation X% in the compared amiselimod. and reported Dentistry year saw the Aplenzin say 'XX. increase prior a now products $XXX in basis, reported

on for I TRULANCE volume the for Since record TRULANCE on returns Like in we levels XXXX recovery, the by occupancy the on generated continue this and growth while which quarterly grew tailwind and levels. As share and On on excited revenue market slide geographic just X%. the growth fourth minute product total on implemented XX. versus in aligner we this quarterly in the targeting quarter the team also footprint, reported pre-pandemic Bausch And yesterday. XX. XX% to highest to approximately you nursing since access XXXX the highest business, We're $XXX of spend a million as finished growing see launched Health was $XXX to XXX% the Slide we strategies acquired XIFAXAN's strong resulted Slide believe of home fourth outpaced grew revenue prescription represents very than in of on quarter home XX, occupancy record. the a approximately XX.X% on catalyst market year million a XXXX, to opportunity. want successfully quarter. about TRULANCE the to TRx while NRx the physician XXXX. weigh XIFAXAN market acquisition, improve OraFit as potential nursing more revenue for XXXX fourth XIFAXAN,

Canada strong earlier the We We and in plus our RELISTOR. year we proud do new $XXX leading of TRx and indicator XIFAXAN, grow lot also a product TRULANCE XX, gains month. to neurology more into there's can a million a portfolio. TRULANCE market brand coordinated we launched Rx efforts gastro this team's of last Slide believe are We're we the here. believe show On for share share these overall gains and and strength TRULANCE achieved great of a

breakdown each these in products business more listed full This a portfolio period. We've business outpacing XXXX, the to now region along X the very right growth shows compared of these which X% fourth than In diverse year the has on is by XX, Rx. market products revenue evolution top products. region to XXX prior Slide organically and growth shown this Turning the the and prescription by the International of of rate. with index, grew the quarter

Moving on Medical on XX. to Solta Slide

our we a very growth a and First, the to the growth reported consumable X, Solta planning are substantially the revenue last business compared Medical for by year, on in organic we year. strong of the had XXXX Medical February registration for with preparations Solta IPO. driven complete and public XX% filing statement XX% year ending The Solta announced

quarter as comparison on selling the skewed denormalize and the XXXX is XXXX in second comparison. call, XXXX of our COVID-related As shutdown half days the into we the noted third shifted with

listed over XXXX by the reference impressive the grew Bausch basis, for versus and of the normalized quarter growth more XX, year-over-year of the reported to a touch the Lomb key was Brilliant company, XXXX revenues particular and U.S., versus as highlights Slide showing point, of in U.S. with apples-to-apples Clear in XXX% the Medical. the growth. In grew the primarily However, XXXX On launch on Clear Pharma, XX% sequentially XX% revenue for fourth successful fourth & our quarter, by quarter third was a XXXX, brilliant have XXXX Bausch XX%. we and a than due higher it Solta

For product Bausch differentiated have a Pharma, portfolio. we

countries. have We in a presence global approximately XX

to cash and strong have We delevering support investment. flow

pipeline We rifaximin novel the opportunities, formulations. advancement have of including the

We top have pursue leveraged can operating to agenda and fit-for-purpose global be line a business infrastructure development a acceleration a margin expansion. and supporting that robust model operating

with of now geography. Moving and Lomb. We're going build daily momentum Bausch lenses in to new our to SiHy continued strong the franchises key on rollout & the

out also platform, build the We IOL microscope. launched ecosystem. We premium to a anticipate next-generation eyeTELLIGENCE launch our XD of the plan

additional roll to continue We out VYZULTA markets. international in

for also XIPERE aBLA NOVXX; We have of filing for is finally, and biosimilar for the U.S. launch XXXX. NDA an filing planned Lucentis exceptions acceptance

full XXXX, Solta still XX% proves Medical, brands is posted Solta which Europe for we also highlights the include Cross-selling market strong believe has to impressive Latam revenue have next-generation in and this enhancements from substantial Key and programs CAGR aesthetics Next, sustainable room double-digit geographic expansion an the to both Solta and for growing portfolio, XXXX our and product will launches. opportunity market. product grow. Solta,

we growth Lastly, and organic of inorganic course, have opportunities.

products drive unlock great see, across growth. segments To our progress of each wrap can of to have efforts and initiatives, business a variety to catalysts company. in you we've our near-term made value As these up,

key In We grew we addition our and from paid our & launching to of Solta, share the operations, Bausch IPOs and products. innovations. strong market the completing scientific using down for of preparations we Lomb debt and advanced cash

innovations for driving X Looking up significant companies, paydown, to separating operator, focus open for line execution that, questions. future. traded publicly and our the addressable With let's into and focus large in X the ahead, on is continuing distinct on markets debt

Operator

& Our with Cacciatore first Company. Ken Instructions] [Operator from question Cowen comes

Ken Cacciatore

I would a but to established that the It currently if wondering the anything assume tighten in order And down sense you timing. try not we condition, there X. Slide anything skew current to would give market know seeing markets? we're timing. like we're kind I of subject us you've is was of I the could the looks on Can timing?

be would one we're peers. your And then constantly you is the real Can perceived to that valuation do the from close and getting questions to about we how also operational review. Bausch So standalone, we steady in & what Joe, go, first want we there of of as any Is as get address really low-hanging need priorities accomplish priorities when Lomb to you get terms talk business real a you when that or discount to kind here? great standalone? you of fruits that the any

Joseph Papa

Ken. I I'll make leave try all, questions, remind please if Great to out, sure any get I them me.

of our think I On lay question of here. out we the the overall IPOs, timing the tried to specifics

clear, are the conditions with information substantially that a to that needs with we those financials. fourth ready market revised all financials to quarter will go accomplished. quarter, be first completed timely SEC the now we'll reports on we'll fourth submit to But the to update the SEC get our basis. we depending be We in continue as To complete on

needs also get about markets the ready Sometime, in do be to for we of we the it, the think maximize shareholders. Obviously, the that we've are make with we let's IPOs, conditions for correct. to in the but of of work March sure value but value the want got and looking our we've done way we're overall the both excited. We Obviously, terms & we to prudent the for X complete to mid- Lomb with done end will for we manage make face We we'll clear, sure we opportunity. those. on be Solta as forward this call to urgency substantially go these maximize make we IPOs, that are that at to IPOs market sure Bausch both a wanted for think shareholder mid-March, to to all

we that believe to that company, of quantum evaluate to of way B&L global company, reducing is help the the independent Pharma pure-play the Bausch the X and Solta think companies and that that On total B&L these debt companies through eye in have by and overall health are valuation terms better expectation the that discount some a valuation. the a of these we as will realize of as debt aesthetics the we separated amount company we Medical as paydown IPOs peers, our market question the of on B&L the will will through that, of well put the

that we market as will thing the that, on & at The the believe Lomb, the we certainly pure-play execute company. for also help second these IPOs, versus look is, Bausch peer example,

I going all as to health help eye overall, things those Pharma overall B&L the think company assess aesthetics compares and the Solta Medical as the the marketplace company, they it So medical Bausch of with valuation business. pure-play likes other company the aesthetics are the of the

We focus think talked important about multifocal new and the an as last once of execution lens, the one on the high that well question the that's product We of the of products for to example, launching On think across daily as of the standalone, priorities beside business. I it. globe the of was -- an continue as some B&L these part we're launch a obviously, the will we products.

inorganic be will to flexibility move health forward. that how it give sheet, company goes us that out Bausch going additional are well growth believe, though, on more improved growth we do at & focus We a things as the to with organic I as Lomb those look all So as absolute mentioned. pure-play the an will eye as balance

little more the of flexibility it's with & point future. we think view, priority at a sheet Lomb we'll the bit I that have balance a as think from those of types Bausch look things about overall So as we

balance inorganic. for and growth potential organically, of a as opportunities B&L both we'll at look clearly, So bolt-on get

Ken. all, got I think them I

me Let next go to the please. question,

Operator

from comes question with Chris next Our JPMorgan. Schott

Chris Schott

of I slowed number. growth that bit still the a through against maybe Just quarter? like growth, X we X-year that look X-year kind talk You’re bit normalized more guess, in seeing can the of if first, look healthy more dynamics went me. about kind Solta a for of as you little obviously XXXX did CAGR at kind XXXX, we

and trend? situation that maybe a then any question. there have kind – is light broader allow the just expecting. you’re guess to is second you or can just happening that out? to just wait we question more IPOs mean if for leverage on you in help the on much of plans? in bit timing a does capital to B&L Solta XXXX to raise you So growth affect delever for whatever some there what’s of as P&L? as I that if How that, elaborate maybe that Or we’re I reason to company of before my shorter-term that XX% just XX% that maybe organically another separation And don’t does guess a bridge out targets bit just those off does laid in fully flexibility like the spin

Joseph Papa

year, for you in quarter. the IPO – is I’m with the to line. We going some the about of comment take the the Scott overall to I’m the ask full Chris. and on Scott, going then dynamics growth the obviously to question, the about notwithstanding are But Solta you for to Scott dynamics. pleased timing? want very address talk do Solta Thank that I’ll

Scott Hirsch

Clear piece launched consumables we organic just of growth really XXXX, XX% saw Solta, in Brilliant showing year-over-year. U.S. reiterate the it, comprising XX% reported, growth big to in of growth XX% touch, was for XXXX, metrics, XXX% of year-over-year a So with the the some which in and

global despite of earlier S-X shutdowns Joe structuring filing Omicron goals we’re performance where as the into the our some demands, mentioned, manifested right this and of many hitting the which, are So month. carve-out aiming

comps remarks, first Joe for makes pleased second XXXX on That were for metrics, incredibly into days out the with the execution of just numbers on. our apples would half, in phasing the So much impacted to substantially with oranges this XXXX. point strong. pushing of overall, comparison half to which going With is shutdowns the that as COVID outlined with our selling cycle, over his respect and so an annual why how the split target XXXX, really they’re to right, in I’m is I you

growth guide, factors. a underlying right, our For few there’s

been demand and demand, is incredibly obviously First, has strong.

below off. quarter, In in finished had consensus where we fact, XX% fourth syndicate our about

relative every expectations, would we $X just a my point, that’s to storefronts also if line. something we And and is, one of nicely there. a or as to in and business an in $XX I a which little is against back million really we’re finished machine wants competing front aggressive incremental say, it down out want. short And second probably form, those premium we demand of store And said so in we that really with other, put before, orders start which million another, leads came don’t each price I

from. building tax that in practitioners. platform out this our been driving a and really ratio, really business and we’re has really equipment the revenues, a the and placing strength means then that of differentiator great and with we’re where approaching which footprint of structure, economics true of have long-term XX of clinical coming long-term Solta for a strong really the now aesthetics consumables think which we’re is years, and the I’m results lot building where in for is at focus of proud the XX% global which is we that’s I business,

I dynamic, meeting we’re customers. demand, the chain well supply, component that a mentioned, that sure our there’s making between all as and needs well balancing have we that as in known electric price So the price I’d Sam it’s with trees as act of think lastly, high and supply now say ensuring a for we’re

is so it. we’re on teens a of strong economic And in all XX% we’re levels, high track I think play right on to net-net what it for targeting the and with really metrics,

Joseph Papa

I’ll sure to And move IPO. please of Bausch IPO those Bausch each obviously we the want for which start confidence degree Solta the first that if Solta of we And make & with, expeditiously our in opportunity anything, but each think take add IPO important two, a I and part the maximize want I said we Lomb both value of of complete. for Lomb, Chris, we – complete the think once to those high the preparations those and obviously, again, Having we’re do. being to have in businesses. opportunities we the value creation to number shareholder Sam, clearly are in that, looking substantially question. want of second & very step But you is

in reckless timing. to We timing. going be want in expeditiously, not that the but to not move reckless we’re So be

there. going monitor the our decisions we’re to and to markets make So to advisers look right work with

comment, make, the moves the it’s down that that of obviously we which will I that of point company. quarter increase process and stay generate in I important the think deleveraging because pay amount to want to cash Third an we each us together, debt, go is cash we forward substantially will

we IPO do of publicly, think we’ve XX%. than will well But be it. as stated & We most things efficient market those view can look than we Lomb believe we part depending for as less Lomb So XX% way that’s all But the to conditions. as obviously that very considerations is at will on about something us. Bausch the & for our tax Bausch be efficient less is

think flexible this. we’re be I to So through thinking going

to well. we this. goal quickly to is what value to that’s said? as Obviously, Our can overall we’re shareholder the North to anything maximize at move creation, look add I Sam, and going as Star as to you way want want we

Sam Eldessouky

us Joe, I look that’s the that how and Chris, of ended momentum strong into delever an will – to to strong, really that we with we XXXX, move generate forward. of ‘XX that our we’re add performance as XXXX. would as cash able results well we’ll go as as in are and XXXX we in carrying that, that forward believe business at in us help be the between you sort provided just fundamentals guidance the just given And we XXXX, very us excitement if and we that also business

Operator

from will David with Sandler. question come Amsellem Piper Next

David Amsellem

the few I business. questions had a on pharma

here, pipeline LOE but XIFAXAN. of So first, I we're the update all aware eventual the on appreciate

with dev it levered, assets you on do there? hopes of that's about Can what pharma in Derm but just Joe, urgency mind, And look smaller those pharma what you again, assets one. segment where to within would just fit number Number talk business? future So biz do assets some kind It's the portion that So and broader terms business? generally of think are you the you can mix. do divest, Ortho within I guess two, -- highly fits high the headwinds? generally, that about the in here. of the to in the something talk the you Is you past, had bringing a given have for you of about, going the the business? of think broader do for pharma in sense how that And is of business Obviously, be Ortho Derm, in obviously, M&A?

Joseph Papa

Sure. also I'll can with is start. But Tom to comment. Tom, you he Appio might also want some add. add us,

have Tom in been of debt. looking at to development exclusivity thinking XIFAXAN very, of that they've tell and First about. business the I terms of Appio But is as going urgency the all, thinking things down XXXX. in and very have pay new Tom we're balance in on the ability and opportunities Obviously, that the about to Bausch we future the Vadaketh, that of through been with thinking Pharma's clearly think the for the of CFO you there through business of our to sense development, can loss in and some active

product one of we acquire already type business segment I'm was thinking a the they're those he's to you in as to the programs. we business help of well. way of it's be and though, of maybe Derm to million. of little over but products bolt-on we the Tom that I before generating think specifically to Things the that about able their bit acquired through. can something like he's approximately go pharma some think some type international the million ask And Ortho slides we been to $XXX a of speak presentation going revenue. that able included $XXX in opportunities Clearly, the TRULANCE, are see the going that's things probably So for been do to that perfect build of

little international the in future. business talk pharma had past and maybe a So success the bit predictor about of the you've

Thomas Appio

Yes.

the pipeline, So at I that clearly, at to we pointed paying we at Joe our presentation, no be the and XX our the look have are prices, And Canada. Salix a look we've that organization. Eastern debt and can with -- look at that scale. And over do deals have, able international in to I footprint have our are the And rates out, the opportunity will when to scale that America LOEs. deals that and and scale to as internationally, at us business we I have a the look and as we able there -- we between we GI the accelerate with we've call adjacent When few ability can R&D the screening and we in that's many have leverage able to execute there last grow years, we I the Latin business, sitting tuck-in an that it, versus that bring reasonable leverage started continue there wonderful many and call would in that could to fact Europe, opportunities When well take with have in into clearly, that there balance over clearly, that revenue be the R&D EBITDA it deals a on. see already to that, footprint we as have reasonable leverage assets pipeline. countries, to business already we in categories the given said be why we been with the bring a scale take we'll we

that diligence a any it's extremely making we down and U.S. bring in what to success. international focused have between and we deals make sure come on of of to So we be going exquisite that be then have the course, paying sure business business We'll debt. do that balance, the in due and to

Joseph Papa

I Tom different to he's well. done what that a got do years X XX the going next He's that's future both part is he and for to in think markets he's planning what a historically, the of XX important as modest. products that little he launch, is be for can expecting really

the it answer the So you'll then Page think yes. is that the was presentation. on business? Derm of see other Ortho within the And fit XX on still business. our pharma I question Does

our have to opportunities, XXXX. their clinical points. do But all terms here half of X though, sit we IDP-XXX of expect have new at we got end completed We primary that in now III NDA look looking a Phase as to continue we've trials met the will product, submit We today, portfolio. at that in that second

in we have for what And in terms David, organic I part of rifaximin the know, novel excited that what without addition as we MSL formulations means the are mentioned we're we're big we've of and model, previously also the together. as that you a also said. the the that in this commenting, leave putting to plans So story about opportunity call, can't

question. Operator, So for next the question please. you thank

Operator

next Nachman from BMO Markets. with Gary comes Capital Our question

Gary Nachman

out would just March changing a are there to through Solta actively Are say months And do targets pieces be you bunch be that leverage that all conditions different? any get ago? good, or you when on outlined? those IPOs, great happen with starting capital you can for the potentially moving are you before the the it still your likely So conditions the this very as those targets Is and well. B&L time you monitoring frame more think at the other? of And about Joe, conditions to the if you all? differently dynamics market for one on beyond if then just So see not how hold and IPOs being spins, could market confidence why receptivity you long that to you confident will can generation laid walk

Joseph Papa

lot with I'll of there. good -- questions start a

and when on market things. substantially essentially, market Obviously, In which think unlock moving financials, the with for in the IPOs want is move that's important. -- can is what this balancing Number work to shareholder to terms I significant desire We go B&L going our X our mid-March, have one, we're with contemplating. the forward need we'll obviously the looking to we change, the say timing both question IPO will expeditiously and IPO, these to we're of time, once at terms which do. will conditions I the update IPO of Solta for again, of what we What both are as to But currently conditions I we value. that March is to at that particular to completed advisers forward. end start the preparations believe

goes bigger that to along maximize So like the that move expeditiously. the said to is that with would creation commentary we value shareholder though, opportunity. Having

balance So we as things these how we IPOs. to X we're going go think those with about forward

one question is you're IPOs. I asking Lomb business. is, yes, are different a is market of They have eye each part a -- different they the health there Bausch think potential IPOs, these for pure & of play

differences aesthetics Solta in is other The a in valuation one term business. of relative size. in There's Medical terms overall valuations,

ballpark billion $X is, them of revenue. One business in a of terms

The million revenue $XXX-plus was other business.

pure-play across about, So a opportunities. wait move both time creation both talking Health them. depending March Company. or the entire line? to pure-play on business being aesthetics, we're stick are to again, them, great we health once opportunities medical want we're one our think, each long maximize But market be we think a eye also there's for that shareholder the of think, we the exciting which of going but to of we terms to there's once a looking And those. just I'm will different again, of Bausch expeditiously, in going with simply I value How point for

to we confident leverage them? these the to we would targets getting in will is that confidence Our highly to targets. simply leverage change The are answer get

We are going change not to them.

targets targets spoken that are Bausch performance that the right change of the Lomb Bausch past, thing of & & actually upon, we'll debt the Lomb leverage. through those at being now. about and that Pharma less look with that we important and to than stay is & and to that's in do the X.Xx and X.Xx only full to to these will capital leverage is that so depend when the at question them the X.Xx at the the leverage business, leverage is raise Solta as we've put we amount our towards separation going incremental the business Bausch ability at Obviously, would leverage target Lomb X.Xx We the IPO, looking the course, our Bausch

Thank the question. I Gary. all you got much very your I think questions, for

Operator

America. Our next of question comes with Gerberry from Jason Bank

Jason Gerberry

launch probably other I entry generics the trying And we other XIFAXAN looking versus Just you what drive ask generic valuable early other to data the settlement also basically, a assume. we litigation of alongside market settlements, about to is As January just was offer to situation, patent XXXX to the look not wanted situation. forward would the pull at to Alvogen. settlement? entry And to can hugely X a generics, the Alvogen I offer at try

and a So the does how off of I can incrementally? X if if a and to B&L curious to the case, you could months by have of get end can't just settlement just you And you offer curious, spin worst decision court, sort drive go what we to spin-off would P&L? year that Because the something know like after the that against in occur impact ability you, IPO. goes

XIFAXAN important a for given to of curious, absorbing just RemainCo? really the So sort debt of lot

Joseph Papa

Sure. of planned I'll couple we March We have specific facts very a Very now XX. up terms planned property in believe on XIFAXAN get that's XIFAXAN product. your good trial with No how and this, the for property, we one. Maybe of to number Norwich for and intellectual the in view strong back the question. intellectual is, question. review a just fact, There

very We Number have believe strong obviously XX We two. intellectual property. patents.

settled we generic previously Sandoz, for visited And question three, have Teva, We XXXX. a Sun settled we for a out, very generic generic before. leading company, pointed Pharmaceuticals, XXXX. this XXXX. company Number a appropriately for we times you two, for company leading number leading As settled with X

a generic conversations the that reviewed there. X good there's property had XXXX. intellectual we them think very with These we've and theme settled for They've companies. are I very strong, our

my over very made been to at Sun business of around the very settle and looked are decision XX they've years. competent property, and I Sandoz Teva, -- for capable, intellectual the the They've for think view companies. XXXX.

And just capabilities of indicated my about about here and Teva, terms think previously good Sun view, but I not it's of very Sandoz to or to decided. very settle to we point point our what the of strong by in trial, our feel we view So whether certainly go feel of our position. ability

abilities question As in B&L how our could to in the very confident impact prevail this off, once this of we the feel trial. spin to again,

let since say we The Sun thing settled though has with rifaximin guidelines, for we that, the happened the seen one guidelines that FDA make XXXX. settled, other settled a additional has to or thing We've product settled we and Teva with -- also with we requirement. they've prevailed add is happened me since added since to decision Sandoz, product-specific an and

put FDA strengthens position when we bioequivalency think So forth even an XXXX that for study our requirement. the in-vivo

evidenced feel that whether or we made. not we specifically that about with made intellectual we the trial. our as like we on made, situation. comment decision decisions that's and whether Obviously, position Sandoz I'm to good to going very our decision by go but up it's forward settle So and property Sun that, Teva

Jason Gerberry

lose you litigation, scenario the on the pertains up. Joe, if in follow spin-off? basket if RP that quickly patent to in preclude would confirm nothing worst-case it Can as you the just debt can a there's I just a covenants

Joseph Papa

hit thing is full X.Xx previously, that only the the say The the make that talked debt that leverage about ratios we I to Pharma. X.Xx want spin-off, on for sure we I'll to Bausch relative the that to

to So that we'll But ability we to question? have go anything But to otherwise, obviously the you Sam, want add forward. that. consider

Sam Eldessouky

No.

to at forward be the with strategic going Jason, covered to Joe. covenants. as well, we full with watching the it is, the and alternatives we that. We're with we're The compliance compliance just it our way today And in covenant. covenants I are go You continue look and in

Operator

Greg next Our Truist from comes question with Fraser Securities.

Greg Fraser

for could then I'm you much anticipate settlement have assumptions provide free pay the guidance? of in specifically to XIFAXAN and XXXX much cash a on reduction? contemplating growth flow, was towards business legacy on how I cash get if debt And in that's flow wondering to you'll the some revenue how available do color Salix litigation? the the to just sense related you deploy trying for

Joseph Papa

that for the XIFAXAN assumptions showed growth quarter. we're Obviously, and the specifically I'll growth saw business very in take the XIFAXAN. overall specifically that revenue fourth with pleased right. the record Salix All we

XIFAXAN early consumer will take but a for this we've of ability our haven't it, achieved we Salix view It pricing growth on of Our TRx prescription pricing. did be products of and then a also the for that -- be our growth certain in with and balance. vision business to I products the we've seen and will talked the January XIFAXAN about balance of some year. the

is do part have of the pricing growth we that So that for assumptions Salix. overall

also the of So probably rest for our business, -- but say. I should

think to a we in net balance adjustment. of what growth going to going take be that way a price as It's take it as a approximately to you going increase the product, a remind for vary expect price the to we pricing. in to price XX% but year-to-year, terms So realize be It's we firm I half of it's XIFAXAN well of take a a a specifically, we somewhere of is we balance. we'll TRx range, product pricing. that when realized if be X% as about ballpark to have that will net expect about

second the On Sam? point,

Sam Eldessouky

And you cash that settlements. and let we billion balance flow, our about the of remind dedicated cash. cash the just roughly $X.X legal on restricted that's as sheet really have me litigations Greg, towards on sitting

on to the exactly is We've that to out. be see on the in not the continue cash And administrative flow really timing comment our opportunity really were just getting that low and it, up the going From the in take overall of that adjusted The XX% to was strength the cash judge you guiding in flow, about just it's I'm it's XXXX. about of touched that's clear XXs. $X.X from in the out in really where already way we an built we'll because conversion. XXXX, to about because you -- going expect start a to EBITDA balance, XXXX and We multiple on billion that processes. we're of which it's cash. X% roughly convert hands when running to XXXX overall going it, we running seen We disbursement happen cash from to, that think

continuing to very level high pleased conversion, with really we're that strong is run So cash thing we're a of very which with. that

Joseph Papa

time have we Sam. maybe Thank you, question, please. last one Operator, for

Operator

question Prasad Our come last Balaji with will from Barclays.

Balaji Prasad

that maybe Lomb upside regard restrict in also question. trends you're downside and I'll my With one contextualize you to provided to with could are risk this between you seeing what the growth, also do and of If guidance? this with great. these with broader guidance X% its the Bausch X% this just set key peers, provided you the that number the to one & to industry of And can differences compare Alcon X% X% guidance be by would X? see That the you growth. or

Joseph Papa

business, us area, excited consumer Sam, the we're X% start, the Bausch as be as on well. in want Lomb side we're add So Bausch for somewhere & about growth the you of we see going one, we to -- in think in the about what for terms Lomb consumer health growing market may in example, eye but we're very Number overall the some that I'll & significant opportunity, range. of is The to seeing seeing the opportunity. upside

of So the the on happens what we as upside our help that the pricing we're business. depending overall well pharmaceutical course, each some the in on pricing that's on of looking two, real overall we've going be the on on in those business and side. overall selected Number also categories to we're that are are probably think positive would of seeing us. portfolio. monitor, continuing that's We seen in things a consumer opportunities we're those what to indicator and to some at side business And for both our B&L pricing prescription as vision seeing the

the product. side of in launch and growth clear we're the the SiHy seeing especially Vision business, both clear the seeing think product. consumer for very daily spherical the XXXX as We the important a So we as multifocal growth of business, launching our us, driver that's opportunity in opportunity the

some I guidance only that other overall -- we're as the the of of all to about -- else add critical The the will to Sam, quick thinking want those you is question. So anything this P&L thing think or be part question

Sam Eldessouky

will of terms we see at Joe. look the going between it in No, a I'll carrying the -- guidance, how XXXX you that is and business covered well, pretty that momentum in positive us I that we're striking performance is balance and into XXXX.

So and launches that. going and XXXX. as excited excited to XXXX Vision that to in also it overall in well we're trends seeing business. where the we're Consumer ophthalmology about balancing as positive Surgical and seeing about very market, We're And Care we're in going for we're new that the be in with

as I'll situations is the all that through factoring with, sure the guidance. emerged went bouncing in and different and positives macroeconomics factors we're call So our negatives and it those that it, making we the the

Joseph Papa

them. M&A and I talk to we product they're our during they the simply also new thing growth, The our some add I your obviously Day seeing. down of when products when growth comes for do, our only bolt-on couple ULTRA But the about about not INFUSE Number launch the the that that a the ONE clearly the new Alcon talking Cooper, was I to comparisons of business -- business. as that launch think, can't growth, acquisitions opportunity the the part I products only as expect or and of I back new things. Surgical think to about the talking -- year last question about that our talked I development. Alcon one, true it to, about I'll additional they're launch speak of product, and we're any talk know or XIPERE the organic Cooper their and and they including what comes growth, in

So any They inclusive differential I talk about that's about. their what of a maybe think slight growth M&A activity. versus business they talk the development --

do business, I go we probably difference we as sit now as there's into us. as you today. the to us. out Thank think much that's an joining current Operator, I'm that maybe guidance. very opportunities it So Obviously, here much, XXXX independent for be only going this B&L for right of aware for not do build everyone. additional thank very we But opportunities point, our bolt-on at you

I think interest excited but today, that's what's going conversations in of to us. appreciate for business. front I conclude about everyone's the our We're in

our the opportunity all day. Have progress make on Thank continue have strategic We simultaneous today. then us for EBITDA our new launch a to products joining great you alternatives. also and to increase to clearly

Operator

now has you The today's concluded. presentation. conference Thank attending for

may disconnect. You now

Bausch Health Companies (BHC) 23 Feb 222021 Q4 Earnings call transcript